Stock code : 9824

SENSHU ELECTRIC CO.,LTD.

Outline
1 . Group Overview
2 . October 2024 Summary of 2nd Quarter financial results
3 . Medium term management plan
4 . Reference data

SENSHU ELECTRIC CO.,LTD.

2

1 . Group Overview

SENSHU ELECTRIC CO.,LTD.

3

Group Overview
Established

November 18, 1949

SharesTokyo Stock Exchange Prime

Capital2,575,200,000yen [US$16Mil.]Type of industry

Wholesale distributor(Industry leader of electric wires general trading company)

No. of employees

823（Average age:40.0）

No. of subsidiaries ７ in Japan and ７ in overseas（China/Taiwan/Thailand/Philippines/Vietnam/USA）
No. of offices

18 in Japan

JapanAsia

SENSHU ELECTRIC CO.,LTD.

USA4Sales Channels of Electric Wires
Electric power

Communications(NTT etc.)(Each electric power
supply companies)

Electric wire
manufacturers

Electric machinery(General manufacturers)

Other domestic
demand(Steel/ship building etc.)

Direct demands
Automobiles(Related companies)
Electricalmaterials

Electrical facilities
materials sales
companies

Construction/
Electrical sales

Electricfacilities

Direct demands

Electricalconstruction
companies

SENSHU ELECTRIC CO.,LTD.

Sales channels of electric wire
Manufacturers
Our sales channels(Electrical materials)
Our sales channels(Direct demands)
Our sales channels(Electrical facilities)
Sales channels of our customers
5Major Customers (image)〈More than 3,700 Customers〉
Electricalmaterials(For Electrical facilities
materials salescompanies)

Electricfacilities(Electrical constructioncompanies)

Directdemands

There are approximately 1,100
major electric material storesthat are members of the union

Electricalconstruction

Top 30 Electrical Construction(Focusing on major companies)

Building/Mansions
Solar Power Generation
Offshore wind power generation facilities, etc.

Manufacturers of machines and robots that produce machine tools, automobiles,
semiconductors, etc.

(End-users)
Machine tools/industrial machines

Automobile facilities

SENSHU ELECTRIC CO.,LTD.

Semiconductor
related manufacturing

6

Customers Composition（Non-consolidated）
2nd Quarter Fiscal Year October 2024
● Main Products● Power Cables● Covered Cables● FA Cables● Power Cables● Covered Cables● Non-Cables
Transition（％）● FA Cables

SENSHU ELECTRIC CO.,LTD.

7

Three Business Models
1

JUST IN TIME system

2

Original products

3

Cable assembly(Electric wire terminal processing）

Electric wires of about 200,000 types

In addition to the sale of electric wires,& difficult to stock in terms of space

we respond to the processing needs ofand theft due to their heavy weight.

small lots and a wide variety of

We have a warehouse floor space of

products and short delivery times,

approximately 70,000 ㎡ in Japansuch as electric wires and control(Sapporo to Okinawa) with overpanels with terminals, at 7 of our 18

50,000 kinds of products, havebases nationwide. In addition, group

established a JUST IN TIME system.

FA cables (Factory Automation (FA)companies will also develop a system

cables used for robots, etc.) with aand work together.

wire manufacturer and sold them as
original products. We accurately
grasp a wide variety of needs and playa role as a technical trading company.

SENSHU ELECTRIC CO.,LTD.

8

2.

October 2024 Summary of 2nd Quarter financial results

SENSHU ELECTRIC CO.,LTD.

9

Consolidated Financial Highlights
Achievements(Unit：million）

・Both sales and profits hit record highs in the quarter

・Demand for semiconductor manufacturing equipment andmachine tools partially stagnated but automobiles and constructionand electronic sales increased.
・Average copper prices increased 8.1% year on year to 1,322,000 yen/t（Record high as of April 2024: 1.56 million yen/t）

Earning forecast
・Upward revision of full-year forecasts (only profit)

Shareholder Returns
・Fiscal Year Ended October 2024

(Change in dividend and acquisition of treasury stock)
Forecast: 130 yen per year (Initial forecast: 120 yen)Interim dividend:65 yen, year-end dividend: 65 yen（forecast）

・Treasury stock acquisition 100,000 shares 500,000,000yen(limit)（Acquisition period 2024/6/5 to 2024/10/31）

SENSHU ELECTRIC CO.,LTD.

10

Consolidated income statements overview（Unit : million yen、％）

2023/10_2Q

2024/10_2Q

Increase or decrease

Net sales

61,851

100.0

66,125

100.0

4,273

6.9

Cost of sales

52,44784.8

55,651

84.2

3,204

6.1

Gross profit

9,404

15.2

10,473

15.8

1,069

11.4

5,099

8.2

5,368

8.1

269

5.3

4,304

7.0

5,104

7.7

800

18.6

Non-operating income

247

0.4

281

0.4

34

Non-operating expenses

690.1

580.1

△ 104,482

7.2

5,327

8.1844Extraordinary incomeーー

112

0.1

112

Extraordinary lossesーーーーー

Profit before income taxes

4,482

7.2

5,440

8.2

957

Income taxes - current

1,450

2.3

1,721

2.6

271

Income taxes - deferred

80.0

27

0.0

19

3,024

4.9

3,690

5.6

666

29

0.0

160.0

△ 13

2,994

4.8

3,674

5.6

679

22.7

99

8.1

Selling, general andadministrative expenses

Operating profit

Recurring profit

ProfitProfit attributable
to non-controlling interests
Profit attributable to owners ofparent
Average copper price(Thousand yen/t)

1,2231,322

SENSHU ELECTRIC CO.,LTD.

18.8

21.4

22.1

11

Sales by Product (Non-consolidated)（Unit : million yen）

2023/10_2Q

Composition
ratio

2024/10_2Q

Composition
ratio

Increase or decrease●FA Cables

19,641

33.6%

21,847

34.8%

2,206

11.2%

●Power Cables

20,88635.8%

22,891

36.5%

2,005

9.6%

●Covered Cables

5,641

9.7%

6,439

10.3%

798

14.1%

●Other Cables

3,138

5.4%

3,140

4.9%

20.1%

●Non-Cables

9,063

15.5%

8,461

13.5%

△ 602

△ 6.6%

Total

58,371 100.0%

62,780 100.0%4,409

7.6%

998.1%

Average copper price(Thousand yen/t)

1,223

1,322

SENSHU ELECTRIC CO.,LTD.

12

Forecast of consolidated financial results(Earning Amendment: announce on June 4 in 2024)(Unit:million yen, %)2023/102024/10

Composition

2Q

ratio

２Q

Composition
ratio

YoY

2023/10

Composition
ratio

2024/102024/10
forecast(announced in March)

Composition
ratio

YoY

forecast(announced in June)

Net sales

61,851 100.0

66,125 100.0

Operating profit

4,304

7.0

5,104

7.7

18.6

8,366

6.7

9,200

7.0

10.0

9,600

Recurring profit

4,482

7.2

5,327

8.1

18.8

8,770

7.0

9,500

7.2

8.3

2,994

4.8

3,674

5.6

22.7

5,920

4.7

6,600

5.0

8.1

1,232

Profit attributable toowners of parent
Average copper price(Thousand yen/t)

1,223

1,322

6.9

124,967 100.0

132,000 100.0

1,250

SENSHU ELECTRIC CO.,LTD.

from forecast(annouced in March)

Composition
ratio

132,000 100.0

YoY

Increase or decrease

5.60

0.0

7.3

14.7

400

4.3

10,000

7.6

14.0

500

5.3

11.5

7,000

5.3

18.2

400

6.1

1.5

1,482

5.6

20.3

13Consolidated Balance Sheet overview（Unit: million yen）

2023/102024/10_2Q

Cash and deposits

28,534

28,828Notes and accounts receivable - trade23,313

22,977

Electronically recorded

11,30213,013monetary claims - operating

Increase or

2023/10decrease

294 Notes and accounts payable - trade

2024/10_2Q

Increase or
decrease

43,05044,656

1,605△ 335 Short - term borrowings

691

726

35

1,711 Current portion of bonds payable6414△ 505－△51,561

1,785

224

9106,914

7,654

739 Income taxes payable

Work in process

247

225

△ 21 Provision for bonuses

773

809

36

Raw materials and supplies

257

290

33 Other Current liabilities

1,566

1,571

547,71349,563

1,850

Securities
Merchandise

1 Current portion of long-term borrowings

Other current assets

253

300

Total current assets

70,83073,3012,470 Total current liabilities

Property, plant and equipment

20,355

21,4981,143 Bonds payable

4235

△7303

269

△ 33 Long-term borrowings

54－△ 54

9,878

10,754875 Retirement benefit liability

2,120

2,183

63

Other non-current liabilities

720678△ 4230,537

32,522

1,985 Total non-current liabilities

2,939

2,899

△ 40

Total liabilities

50,652

52,462

1,809

Share capital

2,575

2,575

－

Capital surplus

2,757

488

△ 2,268

Intangible assets
Investments and other assets

Total non-current assets

48

Retained earnings

48,574

51,186

2,612

Treasury shares△ 5,142△ 3,518

1,623

48,76450,731

1,967

1,565

2,251

685

Total shareholders' equity
Total accumulated other comprehensive
incomeShare acquisition rights

5930

△ 28

Non-controlling interests

32634721

50,71453,3612,646

101,367

105,823

4,456

Total net assets
Total assets

101,367

105,823

4,456 Total liabilities and net assets

SENSHU ELECTRIC CO.,LTD.

14

Shareholder Return Policies

123Dividend（Forecast of 130 yen per year, an increaseof 20 yen）
Setting stable dividend payment as our basic policy, we are paying
dividends considering and examining business results and retained
earnings, etc. comprehensively.
Fiscal Year Ending October 2024 is interim dividend:65 yen(Initialforecast:60 yen), year-end dividend: 65 yen(Initial forecast:60yen),
the annual dividend to 130 yen(Initial forecast:120yen), and adividend increase of 20 yen is expected year on year.

Treasury stock acquisition
We acquire treasury stock in order to improveshareholder returns, improve capital efficiency,
and implement flexible capital policies in responseto changes in the business environment.

Stockholder benefit program・ Total number of acquire shares

100,000 shares (limit)
・Total acquisition amount

500,000,000yen (limit)（Acquisition period2024/6/5 to 2024/10/31）(Once a year (at year end), 1 unit (100 shares) or more)

Less then 1 year : Our original QUO card (1,000 yen)
One year or more : Our original QUO card (2,000 yen)
SENSHU ELECTRIC CO.,LTD.

15

3. Medium term management plan

SENSHU ELECTRIC CO.,LTD.

16

Medium-Term Management Plan:SS2026
Final Year October 2026

Consolidated net

Recurring profit

ROE

10 billion yen

More then 10.0％

sales
150billion yen(Unit：million）

SENSHU ELECTRIC CO.,LTD.

17

Medium-Term Management Plan ：SS2026
Increase sales in the direct demand sector by developing original products
and strengthening the processing sector

New construction
Review of production linesImprovement of the Just in Time system
Strengthening of sales in Tokyo and surrounding Kanto areas,and expansion of share for the other area

EV/RenewableenergySemiconductor/Automated

AI・IoT

Sales products other than electric wires including own brand ones anddevelopment of new fields

ESG/SDGs

Strengthening of global deployment(Improvement profitability of the Group)

Sustainability Management

Inbound Expo IR
インバウンド、万博・IR
Data Center
Construction demand

建設需要

銅価高騰

Promotion of the Senshu Transformation Project
SENSHU ELECTRIC CO.,LTD.

18

Medium-Term Management Plan ：Capital Expenditures andDepreciation

Fiscal year endingOct, 2024

Reason for capital
investment

Toyohashi office
extension(Completed in April2024)

Facility Expansion
Warehouse Expansion

Nagoya FA Center(Will complete in April2025)

Cable assembly,
Assembly of control
panels, etc.

SENSHU ELECTRIC CO.,LTD.

19

Medium-Term Management Plan ：New Fields／Abil heater
Subterranean heated vinyl lines for agricultural use.
Abil heater

Contributes to CO2 emission reduction by directly heating soil inplastic greenhouses, etc., and increases harvest turnover (cycle)
by accelerating the speed of growth.

Contribute to the SDGs
Decarbonization and energy savings compared to boilers that use fuel.

Senshu Electric Nagakute House
Growing tomatoes and strawberries in Nagakute City, Aichi Prefecture,

Annual sales of 1 billion yen
in agribusiness by 2027

using aviru heaters.

Other
Exhibit at agricultural trade shows.
Developing a hot air heater.

SENSHU ELECTRIC CO.,LTD.

20

Medium-Term Management Plan：Sustainability Management
Materiality

SDGs●Mar. 2023

Reduction of CO2 emissions

ETOPICS
Certification of ”Excellent Health

Environmental conservation

Response to climate change

activities

Compliance with environmental laws
and regulations

Management Corporation 2023”●Apr. 2023
Published 2022 Environmental ReportFeb.2024
Publication of the Company’s
first integrated report(Japanese, English）●Oct. 2023
Acquired Solar Power Generation Site

Strengthening information security

Respect and consideration forhuman rights

S

Creating a rewarding work
environment
Stable supply of goods andservices

Strengthening quality control system（Mie prefecture)

Improving engagement with employees and●Jan. 2024

business partners

Smoking ban during working hours

Promotion of health management andenhancement of health and safety

started at all locations

Promoting diverStrengthening information

Noto Peninsula Earthquake Disaster Relief

securityDonations

Strengthening quality control system
Improving engagement with employees andDisclosure under the TCFD

business partners

Corporate Governance Report

Promotion of health management and●Feb. 2024

enhancement of health and safety
Promoting diversity

Senshu Electric Group Integrated Report
2024 published●Mar. 2024

Enhancement of Corporate

G

Establishment of a governance

GovernancesystemThrough compliance
Risk management

Certification of ”Excellent HealthManagement Corporation 2024”●May. 2024
Published 2023 Environmental Report
Corporate Governance Report

SENSHU ELECTRIC CO.,LTD.

https://www.senden.co.jp/en/214. Reference data

SENSHU ELECTRIC CO.,LTD.

22

Electric wire and copper price
There are two types of electric wires: copper and aluminum wires, and most of the wires we deal
with are copper wires. Therefore, the market price of copper is important for the sale of electric
wires. Copper price and sales trends are as follows.
The domestic copper quotation is determined by JX Nippon Mining & Metals based on the international
copper quotation determined by the London Metal Exchange (LME) and the exchange rate.
〈Copper price and monthly sales (non-consolidated)〉

SENSHU ELECTRIC CO.,LTD.

23

Dividends and Dividend Payout Ratio（Unit：yen,％）(Note) The Company conducted a 2-for-1 stock split of shares of common stock on November 1, 2022,
and the dividend payout ratio is calculated on the assumption that the stock split was conducted at the beginningof the previous fiscal year.

SENSHU ELECTRIC CO.,LTD.

24

Trends in shareholder return(Dividend+treasury stock)
Implementation of continuous
shareholder returens through dividends+ treasury stock(Unit:million）

SENSHU ELECTRIC CO.,LTD.

25

Trends in Main Indicators Red = FY10/2024 forecast Blue = Results
Recurring profit ratio(%)

EPS/PER (yen, time)

ROE(%)

Equity ratio(%)

BPS/PBR（yen, time)

DOE(%)(Note) The Company conducted a 2-for-1 stock split of shares of common stock on November 1, 2022,
and calculated are based on the assumption that the stock split was conducted at the beginning of the previous fiscal year.

SENSHU ELECTRIC CO.,LTD.

26

Thank you for your attention.

Stock code : 9824

SENSHU ELECTRIC CO.,LTD.

Notes on the content
None of the information on this document constitutes a solicitation to purchase or sellshares belonging to our company.
Please note that, due to various factors, future performance may differ from theseforecasts. The information contained within this material should be checked against
information obtained through other means and utilized at the user's discretion.
In no event shall our company or its suppliers be liable for any damages resulting fromthis information. We ask that users make investment decisions at their own discretion.
Furthermore, please be aware that the information presented here may not always reflect
the latest information available.

SENSHU ELECTRIC CO.,LTD.